Tuesday 23 January 2018

Aldi and Lidl boost market share as Tesco loses ground

ALDI
ALDI
John Mulligan

John Mulligan

German discount retailers Aldi and Lidl have bolstered their share of the multi-billion euro Irish grocery market, new figures show.

The rival retailers now have a combined 13.8pc share of the market, a fresh record for the pair. Data from research group Kantar Worldpanel shows that in the 12 weeks to June 9, Lidl held a 7.1pc share, up 9.3pc on the corresponding period last year. Aldi had a 6.7pc share, up 26.6pc.

The new figures also show that Tesco – the country's biggest grocery retailer – has continued to see its share eroded. Its share fell nearly one percentage point in the latest period to 27.7pc.

Dunnes Stores was also hit, with the second biggest retailer seeing its share dip to 21.9pc from 22.4pc.

SuperValu, the chain controlled by Cork-based Musgrave, maintained its share at 19.7pc. Musgrave-owned Superquinn also maintained its 5.5pc share.

Kantar also said that there has been some respite from sharp grocery price increases.

"Throughout 2013 the price of our groceries has been increasing at over 5pc, higher than the rate of inflation, and it's a trend which has put a huge strain on consumers' wallets," said Kantar commercial director David Berry.

"Now we are seeing grocery prices increasing at the slower rate of 4.8pc, a welcome sign for shoppers that months of rapid increases may be coming to an end."

He added that higher prices have also played into the hands of discounters.

"Rising grocery bills have encouraged many shoppers to switch to discount chains, with Lidl and Aldi now boasting record market shares of 7.1pc and 6.7pc respectively," he said.

"Those who have continued to shop at the larger grocers have become more price-conscious in the past year with savvy shoppers driving up sales of own-label products by 3.8pc. This contrasts sharply with the 3.6pc decline seen by brand labels."

Irish Independent

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